Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Q4 2023 Earnings Presentation
19 slides from Green Brick Partners's earnings presentation, Mar 1, 2024
Slide 1: Investor Presentation 2023 Fourth Quarter
IN V E S TO R P R E S E N TA TIO N 2023 Fourth Quarter
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning m
Slide 3: Management Presenters
Management Presenters Jim Brickman Jed Dolson Rick Costello C H I E F E X E C UT I V E O F F I C E R PRESIDENT AND CHIEF CHIEF FINANCIAL OFFICER A N D C O - F O UN D E R OPERATING OFFICER 3
Slide 4: Industry-Leading Gross Margins
Industry-Leading Gross Margins Green Brick maintained the best homebuilding gross margins amongst our peers Gross Margin Percentage (Most Recently Reported Quarter) 31.4% 27.8% 26.8% 26.8% 26.4% 26.4% 28.9% 27.6% 23.5% 22.5% 23.1% 22.1% 21.6% 25.2% 24.2% 24.1% 24.1% 23.6% 23.4% 22.9% 22.9% 22.9% 21.
Slide 5: Industry-Leading Home Closings Revenue Growth
Industry-Leading Home Closings Revenue Growth Green Brick reported the highest home closings revenue growth amongst our peers Home Closings Revenue Growth (Most Recently Reported TTM) 4.2% 2.8% 2.3% 0.9% 2.1% 0.3% 27.8% -2.4% -2.4% -3.0% 22.5% 23.1% 22.1% -5.6% 21.6% -7.2% -7.3% -9.3% -9.8% -14.9% -
Slide 6: Strategic Advantages
Strategic Advantages LTM Net Sales Orders YoY Change We believe we are well positioned to capture future demand and increase (Four Most Recently Reported Quarters) market share. 70% • Footprint in two of the best markets of DFW and Atlanta o Demographic shift, job creation, and in-migration provide
Slide 7: Dallas-Forth Worth - Leading Job Growth in the US
Dallas-Forth Worth - Leading Job Growth in the US Dallas-Fort Worth, our largest market, ranked No.1 of the nation’s 12 largest metropolitan statistical areas in terms of job growth as of November 2023, with almost 140,000 new non-farm payroll employment added in a trailing 12 months period YoY chan
Slide 8: Persistent Lock-In Effect
Persistent Lock-In Effect Over 60% of mortgages have an interest rate below 4%, and approximately 80% have an interest rate below 5% Percent of Mortgages Outstanding By Interest Rate 37% 23% 20% 10% 11% <3% 3-4% 4-5% 5-6% 6%+ Source: FHFA, Calculatedriskblog.com, BTIG Research. Data as of 2Q23. 8
Slide 9: Single-Family Inventory Remains Low
Single-Family Inventory Remains Low Both existing and new single-family home inventory remain near historical lows across the country. New single-family home inventory steadily increased during last 12 months 9
Slide 10: Millennials Entering Prime Home Buying Age
Millennials Entering Prime Home Buying Age With the 35-44 year-old demographic considered the most active homebuyer, growth of this buyer segment supports future strong demand Population Of 35-44 Year-Olds In The U.S. Based On Ten-Year Trailing Birth Rates Population segment growth is expected to be
Slide 11: Highlights – Q4 2023
Highlights – Q4 2023 • Net new home orders increased 60.5% year-over-year. 4Q23 4Q22 Change Quarterly absorption rate increased 38.2% year-over- year to 7.6 sales per average selling community per quarter. Net new home orders 679 423 60.5% • Cycle times decreased to 5.7 months, allowing us to New ho
Slide 12: Highlights – FY 2023
Highlights – FY 2023 • Net new home orders increased 70.1% year-over-year, the largest increase among peers. Absorption rate FY 2023 FY 2022 Change increased 52.3% year-over-year to 9.9 sales per average selling community per quarter. Net new home orders 3,356 1,973 70.1% • Residential units revenue
Slide 13: Business Priorities
Business Priorities Cancellation Rate (Most Recently Reported Quarter) 28% • Gear up for the spring selling season o Cancellation rate remained the lowest among public 19% 19% homebuilders at 7.2% in Q4 2023. 14% 15% o Incentives peaked in October 2023 at 6.0% and dropped to 13% 13% 13% 12% 12% 5.2%
Slide 14: Our Growth Engine – Trophy Signature Homes
Our Growth Engine – Trophy Signature Homes Trophy was founded in 2018, filling a critical gap for high-quality, value-engineered homes in the Dallas-Fort Worth market. In just 5 years, Trophy grew to become the 7 th largest Home Closings - Trophy Signiture Homes homebuilder in DFW by starts and expe
Slide 15: Expected Lot Deliveries In 2024 – Dallas-Fort Worth
Expected Lot Deliveries In 2024 – Dallas-Fort Worth Majority of our DFW lots are being delivered in infill and adjacent “desirable areas” 15
Slide 16: Expected Lot Deliveries In 2024 – Atlanta
Expected Lot Deliveries In 2024 – Atlanta Majority of our Atlanta lots are being delivered in infill and adjacent “desirable areas” 16
Slide 17: Appendix
IN V E S TO R P R E S E N TA TIO N Appendix
Slide 18: Appendix: Net Debt To Total Capitalization – 12/31/23
Appendix: Net Debt To Total Capitalization – 12/31/23 Less: Cash and Gross cash Net equivalents Total debt, net of debt issuance costs $346,860 $179,756 $167,104 Total Green Brick Partners, Inc. stockholders’ equity $1,300,704 $0 $1,300,704 Total capitalization $1,647,564 $179,756 $1,467,808 Debt to
Slide 19: Appendix: Net Income Return on Avg. GAAP Common Equity
Appendix: Net Income Return on Avg. GAAP Common Equity Dollars in Thousands FY 2023 Net Income Applicable To Common Shareholders $281,751 GRBK Common Equity Beginning $1,014,211 GRBK Common Equity Ending $1,253,101 GRBK Common Equity Average $1,133,656 Net Income Return on Avg GAAP Common Equity 24.